J.P.Morgan Raises L&T To ‘Overweight’ On Orders

J.P.Morgan upgraded Larsen & Toubro<LART.NS> to “overweight” from “neutral” and raised its target price after the company announced orders worth 94 billion rupees this week.

Fresh orders take the tally of disclosed orders in the January-March quarter to 154 billion rupees, J.P.Morgan says in a note, adding the company appears well-poised to comfortably exceed the lower end of FY13 order inflow growth guidance of 15-20 percent.

An expected recovery in the capex cycle and valuations are also making L&T shares more attractive, J.P.Morgan says.

“The capex cycle has bottomed out and L&T is best-positioned to benefit from a recovery in our view,” J.P.Morgan says.